Market announcement
TKM Grupp AS
Category
Other price sensitive information
Date
08.10.2009 10:36:57
Title
CORRECTION: SELVER INTENDS TO FREEZE ITS ACTIVITIES ON LATVIAN RETAIL MARKET
Message
Correction in heading: Selver intends to frees its activities on Latvian retail market. A-Selver AS is planning to freeze the activities of its subsidiary Selver Latvia SIA, which was created two years ago for operating on the Latvian retail trade market. The sudden deterioration of the economic environment of Latvia has brought losses to Selver Latvia SIA that mean the company has been unable to meet the expectations it had at the time the decision to expand to the Latvian market was made. The loss made by SIA Selver Latvia in 2007 was 2 million kroons and the loss in 2008 amounted to 18 million kroons. The net loss made by the company this year may be as high as 100 million kroons (6.4 million euros). Selver Latvia SIA owns six operating stores the first of which was opened in December 2008. A-Selver AS intends to freeze the activities of its subsidiary Selver Latvia SIA by closing all six stores in Latvia and laying off 220 employees. Detailed information about the further action plan of Selver Latvia SIA and the one-off costs associated with the freezing process will be published through the stock exchange system this year. Raul Puusepp Chairman of the Board Phone +372 731 5000